Snowy Hydro sale would reap billions

The estimated value of the NSW government’s stake in the Snowy Hydro-electricity Scheme has tripled to more than $3 billion.

A report by NSW Auditor-General
Peter Achterstraat
revealed the market value of the state’s 58 per cent share in Snowy Hydro was $3.3 billion as at June 30.

The state previously valued its stake at $1.1 billion to reflect what it paid for it. Snowy Hydro Ltd is a publicly owned company that owns and runs the Snowy Mountains Hydro-electric Scheme and two gas-fired power stations in Victoria. Victoria owns 29 per cent and the federal government 13 per cent.

Federal agency Infrastructure Australia, among others, has called for Snowy Hydro to be sold to raise funds for new projects. NSW says it has “no plans" to sell.

In 2006, the Howard government estimated a full sale would raise $3 billion, before the plan was abandoned under political pressure.